Vroom Announces Wind-Down of Ecommerce Used Vehicle Operations
22 Janeiro 2024 - 6:10PM
Business Wire
Vroom, Inc. (Nasdaq:VRM) (Vroom, or the Company), a leading
ecommerce platform for buying and selling used vehicles, today
announced that it is discontinuing its ecommerce operations and
winding down its used vehicle dealership business in order to
preserve liquidity and enable the Company to maximize stakeholder
value through its remaining businesses. Vroom owns and operates
United Auto Credit Corporation (UACC), a leading automotive finance
company, and CarStory, a leader in AI-powered analytics and digital
services for automotive retail. UACC and CarStory will continue to
serve their third-party customers and focus on growing those
businesses.
Under the Value Maximization Plan approved by Vroom’s Board of
Directors, the Company is suspending transactions through
vroom.com, planning to sell its current used vehicle inventory
through wholesale channels, halting purchases of additional
vehicles, and executing a reduction-in-force commensurate with its
reduced operations.
Thomas Shortt, the Company’s Chief Executive Officer, said “As
we previously disclosed, we intended to raise additional capital to
fund our operations and support the extension of our vehicle
floorplan facility beyond its current expiration date of March 31,
2024. Despite significant efforts to do so, we ultimately were
unable to raise the necessary capital in the current market.
Obviously, we are very disappointed with this outcome. Two years
ago, we set out to build a well-oiled machine, improve unit
economics and dramatically improve our customer experience and I
believe we achieved those goals. I want to thank our dedicated
Vroommates, customers and business partners, as well as our Board
of Directors and investors, all of whom have supported us over the
years.”
Robert Mylod, Independent Executive Chair of the Board, said
“Although we were unable to raise the capital necessary to achieve
profitability in our ecommerce operations, we are committed to
responsibly managing our remaining businesses and prudently
deploying our capital as we seek to maximize value for all of our
stakeholders.”
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements, including without limitation statements
regarding the execution of and the expected benefits from our Value
Maximization Plan, including anticipated benefits or cost-savings,
our expectations regarding our ability to maximize stakeholder
value through United Auto Credit Corporation and CarStory, our
ability to successfully halt our ecommerce operations, sell our
used vehicle inventory in an efficient manner and implement the
reduction-in-force, and future results of operations and financial
position of these remaining businesses. These statements are based
on management’s current assumptions and are neither promises nor
guarantees, but involve known and unknown risks, uncertainties and
other important factors that may cause our actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements. For factors that could cause actual
results to differ materially from the forward-looking statements in
this press release, please see the risks and uncertainties
identified under the heading "Risk Factors" in our Annual Report on
Form 10-K for the year ended December 31, 2022, as updated by our
Quarterly reports on Form 10-Q for the quarters ended March 31,
2023, June 30, 2023 and September 30, 2023, each of which is
available on our Investor Relations website at ir.vroom.com and on
the SEC website at www.sec.gov. All forward-looking statements
reflect our beliefs and assumptions only as of the date of this
press release. We undertake no obligation to update forward-looking
statements to reflect future events or circumstances.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240122996684/en/
Investor Relations: Vroom Jon Sandison
investors@vroom.com Media Inquiries: Vroom Chris Hayes
chris.hayes@vroom.com
Vroom (NASDAQ:VRM)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Vroom (NASDAQ:VRM)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024